margins are concerned, and when differences turnover is not
mandated while applying the Transactional Net Margin method
under Rules 10B( l )(e) read with Rule
Indian customers. Moreover, the
Revenue failed to rebut the fact that impugned transaction of sale
of software/hardware was undertaken outside India to group
company ... Transactional Net Margin Method was the appropriate
method for determination of the arm's length price in
respect of transaction between MSCo and MSAS
upon Transitional Net Margin Method
("TNMM") instead of Comparable Uncontrolled Price Method
("CUP"), as the 'Most Appropriate Method ... pricing as
proposed by the assessee based on the Transactional Net Margin
Method ["TNMM"] was not accepted and the TPO essentially came
open to the assessee to
urge that TNMM is the most appropriate method instead of RPM. In
these circumstances, it is also clarified that ... under
the RPM method. The ITAT also held that the Transactional Net
Margin Method ["TNMM"] ought to be adopted as the most
appropriate
appears to have been influenced by the sheer size of
the transaction set which was undertaken between the respondent
assessee and its foreign ... Transactional Net Margin Method, provides requires that
"the net profit margin realized by the enterprise (i.e. the
assessee) from an international transaction entered
under which strict similarity in
not mandated as in other TP methods?
2.4 Whether the ld. ITAT was right in fact ... programmes
and are hence functionally similar to the applying the Transactional
Net Margin method under Rules 10B(1)(e) read with Rule
said comparable having a
high profitability and brand when TNMM
[Transactional Net Margin Method] as an appropriate
method is deployed to iron out the differences
expenditure need not be
considered as cost for application of Transactional Net Margin
Method (hereinafter referred to as „TNNM‟)?
(d) Without prejudice to above, whether ... towards
AMP expenses, as in the context of comparables relating to
international transaction of provision of advisory services (refer
para 36 to 38 of impugned
alleged services have not been benchmarked under any
of the five method prescribed under the Act in the Transfer
Pricing Officer.
Furthermore, the assessee ... That the learned AO/TPO have inappropriately rejected the
Transactional Net Margin Method ("TNMM") used by the
Appellant and erroneously applied Comparable Uncontrolled
accepted the CUP method as being appropriate for the purposes of
benchmarking the inter-unit transactions. The appellant however
asserts that the Assessing Officer ... Transactional Net Margin Method ['TNMM'] method,
when the DRP had impliedly rejected the said method and
upheld the application of CUP method
